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by eli_gottlieb
4151 days ago
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>I'd like a pony. All right, have an over-worked pony and stop pretending not to know about marginal costs and prices. As long as the worker in Cambodia remains cheaper by anything over the exact cost of shipping than the one in South Carolina, rather than by orders of magnitude, his country has a comparative advantage. http://fc07.deviantart.net/fs71/i/2011/196/0/f/tired_appleja... |
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It's not just shipping costs. It's also the fact that doing business in a well-functioning first-world country is much easier than doing business in a third-world country.
Also, just declaring that Cambodian workers will get $7 an hour wouldn't just magically spill money into the workers. If the market wage is $1 an hour, a bulk of that difference is going to go into pockets of the people handing out the jobs via kickbacks.
An awesome solution that doesn't work in the real world isn't an awesome solution.